I need a discussion response to my peers post This week is great topic because w

Question

I need a discussion response to my peers post

This week is great topic because we need understand what regulations are in place for consumers when it comes to investing. Investing can be investing savings, buying a home, preparing college tuition for kids or buying a car. My background is in the credit union industry. Specifically auto loans through indirect lending. There are certainly things to consider when investing into a vehicle and how to protect that consumer. One box that is the most important is Regulation Z, the Truth in Lending Act (TILA). “TILA is to promote the informed use of consumer credit by requiring disclosures about its terms and costs.” Basically you want to know what your commitment is going to be in your investment. To simplify it you have your vehicle cost, your APR, what day your payment starts and how long you are going to pay. That way the Bank can’t charge you more, unless penalty fees for late payments or not paying at all. We also live in a day and age that it is easy to apply for credit, credit cards, credit limit increase. Financial Institutions can make auto decisions in less than a minute. One thing you have to consider as consumer is what do they do with your credit? Luckily the Fair Credit Reporting ACT (FCRA) is there. “…(FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.” Therefore, financial institutions must report if they used your credit and who they are. That way you know who it was and what for? Especially since identity theft is huge problem today. These are two that stuck out to me that I find very important to know.

Regulations. (2016, December 28). Retrieved November 09, 2017, from https://www.federalreserve.gov/bankinforeg/regzcg.htm

Fair Credit Reporting Act (FCRA). (2017, April 06). Retrieved November 09, 2017, from https://www.experian.com/blogs/ask-experian/credit-education/report-basics/fair-credit-reporting-act-fcra/

Explanation / Answer

There are many good points mentioned in the post, which tells us the importance of FCRA and what should a customer be aware of their responsibilities and rights.

To add to the post about the importance of FCRA, U.S. Federal Government has passed a legislation to enact this law in order to promote the fairness, absolute accuracy and all of the consumer information for the use of consumer reporting agencies.

The point I would like to highlight is the security of the private information that these companies hold and how are they managing such a critical information of the consumers. There have to be stringent laws about managing such data also to save consumers from any theft and subsequent financial damages.

The government must come up with some legal framework so that companies are accountable if such a data theft happens due to mismanagement of the company rules and procedures.

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